JWAM Archives - Green Market Report

Michigan-based Gage Cannabis Co. has secured an investment of $20 million from funds advised by JW Asset Management as part of the company’s Regulation A, Tier 2 capital raise. The company said it is hoping to go public by the end of the first quarter of 2021. Additionally, Gage confirmed that general public access to the Offering will close on December 16th, 2020.

JW Asset Management’s investment will provide Gage with the capital it needs to accelerate the expansion of its retail and cultivation footprint, pursue accretive acquisitions, and help position and solidify Gage as an important cannabis operator in the state of Michigan. JWAM has been an active investor in the cannabis sector since 2014, investing in many of the industry leaders, including TerrAscend Corp., where Jason Wild’s strategic involvement and support has been instrumental in driving tremendous value for shareholders.

In October the company said it has garnered $30+ million (unaudited) in sales so far this year and is anticipating further sales growth in the coming months. The company has stated that it is an exclusive cultivator and retailer of cannabis brands including Cookies, Lemonade, Runtz, Grandiflora, SLANG Worldwide (CNSX:SLNG), OG Raskal, and its own proprietary Gage brand portfolio in Michigan.

“JW Asset Management is widely recognized as one of the premier investors in the cannabis sector. Their participation provides Gage with a strong balance sheet that enables us to further establish our brand in one of the fastest-growing cannabis markets in the United States,” said Fabian Monaco, President of Gage. “We are confident in executing on our 2021 goals, driven by the growth of both the cultivation and dispensary arms of our business. We are fortunate to have developed a strong relationship with JWAM and are grateful for their support as we capitalize on the opportunities ahead in Michigan.”

Gage’s Michigan footprint has grown significantly since its first retail opening in the state in September 2019. The Company now supports five provisioning centers (dispensaries), three cultivation facilities, and one processing facility across the state of Michigan, with plans to double its retail footprint by the end of the first quarter of 2021. Earlier this month, Gage said it has had its first harvest at its flagship Monitor Township cultivation facility with a second harvest scheduled for this week.

Jason Wild, Founder and President of JWAM added, “Gage has rapidly established a strong footprint in Michigan and I’m thrilled to participate in their growth. I’m confident that Gage’s experienced team will continue to execute on the opportunity ahead.”

The first tranche of approximately $10 million of the $20 million commitment from JWAM has been received by the company. Gage said it expects to receive the remaining funds prior to year-end 2020. In consideration of JWAM’s participation in the Offering (US$1.75 per share), the company has agreed to issue an equivalent number of warrants to purchase subordinate voting shares of the company. Each Warrant shall entitle the holder to purchase one subordinate voting share in the capital of the Company for $2.60.

Bruce Linton, Executive Chairman of Gage Cannabis said, “Michigan is one of the top cannabis markets in the U.S., and I am confident Gage is poised to continue building on its historical execution and fortifying its position as one of the top operators and brands in Michigan, as well as a name consumers look for across the United States”. Linton is the former CEO, Chairman, and Founder of Canopy Growth Corporation (NYSE: CGC) and was the first and lead investor in the offering, emphasizing his support of the company.